Linear TV Eroding Due To Poor Value Exchange, Not Cost [REPORT]

Cable and satellite viewership is eroding because it is perceived as a poor value exchange according to a new study from MAGNA, the intelligence, investment and innovation unit within IPG Mediabrands and IPG Media Lab, the media futures and advisory arm of IPG Mediabrands. “Reaching the ‘Un-Reachable” debunks five commonly-held myths about those who watch little to no television, including which demographics are veering away from traditional television and why.

While the shift away from linear television has been well documented, a number of misperceptions have persisted about the characteristics of this elusive – and growing – group. Some of the myths explored in the story include:

    Myth #1: “Watching television” is broadcast or cable on a television set.
    The truth: Television is no longer a device. Instead, consumers broadly define “watching TV” to refer to video content viewed on any device, including computers and phones.

    Myth #2: Those shifting away from linear TV are mostly young with little purchasing power.
    The truth: In fact, light linear TV viewers have the highest proportion of affluence (incomes of over $100,000/per annum) and over 40% of them are Gen X or older

    Myth #3: Consumers are simply opting out of traditional TV subscriptions because it’s “too expensive.”
    The truth: On the surface, this would appear to be accurate but dig a little deeper and it is revealed to be inaccurate. Even among affluent consumers for whom the cost of a cable or satellite subscription represents a minute fraction of their disposable income, cost is cited as an issue. This actually communicates that it’s not an issue of affordability, but rather a poor value exchange driving the opt-out trend.

“Linear TV may be declining but video consumption is as strong as ever,” said David Cohen, President, North America, MAGNA. “There are no ‘unreachables’…rather there are device-agnostic streamers with deep pockets who watch just as much video as linear TV viewers and are receptive to relevant, targeted video ads. This segment is growing and it’s crucial for marketers to gain traction with them.”

To download report CLICK HERE.